Comments on: Ask the taxgirl: Divorced Parents and Tax Credits

By: Dannielle

Dannielle — Tue, 02 Mar 2010 17:49:19 +0000

Hi I have a quick question. My ex and I are supposed to split the daycare cost 50/50 per our divorce agreement. I am supposed to pay for the care in full and he is supposed to reimburse me his half within 1 week of my payment. However, he generally just pays a little here and there when ever he feels like it, often not meeting his 50% requirement. I am the custodial parent so I claim the children’s childcare expenses. Am I allowed to claim the full childcare bill since I pay the full amount up front and am reimbursed partially later? Or am I only allowed to claim my 50% even thought I don’t know when or if he will pay back his half?

Thanks
~D

By: Demi

Demi — Sun, 07 Feb 2010 19:13:59 +0000

Im not a lawyer but if I had to chose I would say both. Meaning, I would file head of household and claim them because if the IRS comes back to you all you would have to do is provide them with proof that the kids reside with you all year long. Whether it be school records, medical and etc. But in the mean time I would also go ahead and have it modified through the courts. That way you have legal documents and it makes it easier. Always dot your i’s and cross your t’s.

By: Aemmae

Aemmae — Mon, 11 Jan 2010 15:10:34 +0000

This is a tad complicated. As of November 2006 (when the divorce happened) my husband’s ex wife has legal full custody of their two children stated in the divorce papers, however, the children have lived with us from May 2008 because she became unstable. It is not legalized that the children are with us full time, and in the divorce papers it says that one parent claims one child and the other claims one child. At the time of divorce, the children were with the mother and my husband was paying child support. Last year we let her claim one child, pretty much out of pity, at this time we support the children 100%. She contributes less than 1%. Is it possible to say that because we provide more than total support for both children we can claim both. Or do we HAVE to do what it says in the divorce papers?

By: Vicki

Vicki — Thu, 18 Jun 2009 15:12:01 +0000

son’s ex is living with someone, not working, she wants to claim one child as tax deduction on her “fellas” taxes. Can she do this?

By: b barry

b barry — Wed, 15 Apr 2009 12:54:40 +0000

please advise-

so even though my two kids, 7 & 9, stay with me 45% of the time, I provide a household for them, & pay all child care expenses, I cannot claim to be a head of household or write off the dependent care expenses? please confirm. so much for using the tax code to encourage positive behavior & personal responsibility. once again Washington talking out of both sides of their large mouths

By: Paola

Paola — Mon, 16 Mar 2009 17:42:23 +0000

Can you please advise on the followng scenario?

Couple divorced in 2000. Two children involved, current ages 12 and 14 years old. Non custodial parent requesting custodial parent to sign Tax Form 8332 -for 14 year old child in order to file Taxes for 2008. Custodial parent refusing to sign the form. Custodial parent’s tax refund has been filed -it is assumed not claiming 14 year old child-. Are there any steps noncustodial parent needs to follow in order to be able to file 2008 tax claim on a timely manner? If so, what are they and who should be contacted?

Also, custodial parent has never agreed to sign Form 8332 for 14 year old child. -By doing so, it is assumed that custodial parent has tried to set presedent as of which child will be claimed once oldest child is non-claimable (18 years or highschool graduate). If this assuption is right, can custodial parent in deed keep claiming younger child for the two years after older child is non-claimable? Any recommendations as of ways to rectify this if at all possible?

Thank you in advance for your help!

By: Dane

Dane — Sun, 08 Mar 2009 20:29:26 +0000

Credit for child care incurred is a big credit for me . I pay 60% of the daycare costs for the year per the court decree. As I set out doing my taxes it appears that due to a remarriage in ‘08 I am not able to take the Child care credits for 2 children. I have shared parenting 50/50 time – neither parent is the custodial parent. Of three children each parent claims a single (1) child a year alternating floating child # 3 every other years.

It appears the IRS considers my new spouse as built in childcare because she was not working. It is complicated because new spouse did not get a W-2 but a form 1099-G for unemployment benefits…and those are not considered earned income. The new spouse received unemployment benefits, documented looking for work but without a W2 to post for the year so then I lose the Child Care credit. That is a huge hit. I’m trying to work this a few different ways and its not working…any tips?

By: Scott

Scott — Fri, 06 Mar 2009 00:15:49 +0000

Thank you for your analysis. It seemed to me that it was better for the low income to be the “custodial” parent, but then the HOH classification goes away for the high income parent, which seemed backwards. Since we lived together for 9 months of 2008 and split custody the remainder of the 3 months, I think the custodial parent could be considered either way.

Thanks again.

By: Mary O'Keeffe

Mary O'Keeffe — Thu, 05 Mar 2009 19:02:57 +0000

Scott’s question raises some provocative tax policy questions for my students to consider, so I’ve addressed it in a post to my class blog here:

http://bedbuffalos.blogspot.com/2009/03/provocative-question-from-taxpayer.html

I used the National Bureau of Economic Research TaxSim model to project 2009 estimated tax liabilities. It turns out that taxes under option 1 are lower than under option 2, but either Scott and his ex-wife will face a lower total tax bill than if they had stayed married. Remarrying before the end of 2009 would raise their total tax bill about 50% compared to option 1.

By: Scott

Scott — Thu, 05 Mar 2009 03:20:56 +0000

Similar question. I have two kids with split custody (they each live with my ex and myself half the time). The divorce decree says we each can claim one. However, we are going to figure the taxes according to the decree, and are willing to let the other claim the child if beneficial for tax purposes and split the difference. One of us makes about 60,000 and the other 17,000 with standard deductions and not much for other items (ie – loss, non itemized). Also, we were divorced in 2008 so we can make the child care expenses max out either way (6000).

Since the kids don’t actually live with one more than the other, I think it would be ethical to work it either way.

1. Low income parent: claims EIC on both, child care, HOH
High income parent: claims both dependents, single (can they also claim HOH), no child care

2. Low income parent: claims EIC on one child, HOH
High income parent: claims both dependents, HOH, child care on 1 child

I realize this is kind of complicated and probably not the greatest description, but would greatly appreciate any advise.